What is Help to Buy?
The Help to Buy scheme could help you to purchase your dream home. When you put down as little as a 5% deposit on a newly built home, you can get a government Help to Buy: Equity Loan - for up to 40% of the purchase price for homes in London and 20% through out the country. The reminder of the cost is covered by a mortgage from lenders participating in the Help to Buy scheme. You won't be charged fees on the loan for the first five years of owning your home.
Alternatively Help to Buy: ISA which is another scheme lead by the government may also help you take the steps to buy your own home.
Help to Buy - How it works
Equity loans are available to first time buyers as well as some homeowners looking to move, as long as the following are met:
- The home you are looking to purchase must not cost more than £600,000
- You must buy this home to live in, and not as a buy to let property
- You must not own any other property at the time you buy your new home
Help to Buy: Equity Loan
- 5% deposit required
- 20% loan from Government
- You obtain a mortgage for the remaining 75%
- No fees charged on the 20% loan for the first five years of ownership
| Typical example | |
| Example home value | £400,000 |
| 5% Deposit* | £20,000 |
| 20% Equity loan | £80,000 |
| 75% Mortgage | £300,000 |
*Minus any Reservation fees, or other applicable fees paid between Reservation and Exchange.
London Help to Buy: Equity Loan
- 5% deposit required
- 40% loan from Government
- You obtain a mortgage for the remaining 55%
- No fees charged on the 40% loan for the first five years of ownership
| Typical example | |
| Example home value | £400,000 |
| 5% Deposit* | £20,000 |
| 40% Equity loan | £160,000 |
| 55% Mortgage | £220,000 |
*Minus any Reservation fees, or other applicable fees paid between Reservation and Exchange.
Participating Developments
Many of our developments are offering Help to Buy properties. We are committed to helping you get on the housing ladder.
View our participating developments on the link below and get in touch with the relevant Sales teams, who will be able to answer any further questions you may have and arrange for you to come and see the development.
Calculator
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CHECK THAT THESE MORTGAGES WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT FINANCIAL ADVICE.
The Berkeley Group plc, Berkeley House, 19 Portsmouth Road, Cobham, Surrey, KT11 1 JG. April 2013
Frequently asked questions
Yes can reserve a new home off plan at any time. However you cannot exchange contracts before six months to legal completion of the sale. You also need to ensure that your mortgage offer is valid through the legal completion.
The Government's standard rules and procedures for Stamp Duty Land Tax (SDLT) apply to all Help to Buy purchases on full purchase price of the home.
The equity loan is provided by the Homes and Communities Agency and administrated by your local Help to Buy agent. The contribution is secured by a second charge on your property title registered at Land Registry.
Because Help to Buy homes are generally on new developments (and may still be under construction), in common with most new home sales, you will normally be expected to arrange mortgage and exchange contracts within one month of paying your reservation fee.
Our Sales Consultants will be happy to answer any questions you may have regarding the Help to Buy scheme.
For more information, please visit the Help to Buy website.
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